Search BNamericas

Password Recovery

Email for your Account

You will get an email with the instructions on how to reset your password

We don’t seem to have an account link with that email address {0}. Please try again.If you need further assistance, please contact us at info@bnamericas.com or call us at +56 (2) 2941-0300 (business hours, Santiago de Chile time)

We don’t seem to have an account link with that email address {0}. Please try again.If you need further assistance, please contact us at info@bnamericas.com or call us at +56 (2) 2941-0300 (business hours, Santiago de Chile time)

Message

¡Oops!

Share!

While the recently announced set of new rules for Chile's employer-sponsored pension plans (APVC) will provide the market a moderate boost, insurance association AACH believes the minimum percentage and number of employees required for a company to offer such plans is still too high.

The new rules lowered these requirements to 15% and 100 employees, from 30% and 300 originally.

"To fulfill this requisite, the company must have at least 667 workers. Very few Chilean companies have that many workers, so we expect this to gradually broaden to include smaller companies," AACH manager Jorge Claude told BNamericas.

Claude approved of the rules making APVC plans more flexible according to how long employees have worked at a company and easier for employees to sign up for.

Under the new rules, employees will be able to claim funds chipped in by their employers as their own in their APVC accounts after five years, instead of two. This is known as vesting. The 24-month period was considered too short by local companies, as it was seen as a disincentive for talent retention.

According to experts, the APVC market could generate as much as US$600mn over the next few years.

My notes

BNamericas delivers on-the-ground insight and trusted business intelligence to companies and investors active in and entering Latin America. Identifying opportunities early on and connecting clients with decision-makers across 12 industries, BNamericas is the edge your company needs in Latin America.

Ask us a question

Methodology & Procedures

Definitions

Projects covered include state-owned and private projects in the Infrastructure, Electric Power, Oil & Gas (excluding upstream), Water and Waste, and Mining sectors.

Where applicable, a project is considered as such until the end of construction and ramp-up to full capacity (with the exception of mining projects, where the date of commissioning signifies the end of the project). Projects must have a:

Data

For state-owned projects, initial information about the start date and estimates for completion and investment are taken from original signed contracts, along with addendums and annexes.

If original contracts cannot be obtained, information is taken from public documents, presentations, news articles from BNamericas archives, and external sources.

In cases where contracts are subject to approval by legislators, the start date is the date of the law or legislative approval.

In the case of private projects, information is taken from public sources, such as stock exchange filings, annual reports, company presentations, third party research and press releases.

In judging the timing of investment decisions for private projects, great care was taken to differentiate between large projects receiving environmental approval and proceeding directly to construction, and smaller projects where the investment decision hinges on securing financing.

Best care is taken to ensure that recorded data is correct at the time of entry and that each entry is backed with a relevant source.

The greatest care possible was taken to ensure consistency of information in order make a like-for-like comparison in project costs. Insofar as the figures rely on disclosure by the organization or company responsible, the figures can be considered to be conservative in nature.

No attempt was made to adjust figures for inflation during the course of research or for consideration of the time value of money.

Validation

In the case of state-owned projects, validation is carried out where possible with either a member of the consortium, EPC contractor, a relevant state agency or advisors to either party.

Currency

Projects costs are measured in US dollars. Where project costs are measured in a local currency, amounts are converted to US dollars at the date of the relevant announcement, signature or report.

Severity of deviation from original estimates

The severity of deviation from original estimates is defined according to set criteria.

Timing

Status

Condition

Ahead of time

95% of original estimate or below (measured in months)

On time

95% to 105% of original estimate

Minor changes

105% to 120% of original estimate

Medium changes

120% to 160% of original estimate

Major changes

Over 160% of original estimate

Budget

Status

Condition

Ahead of budget

95% of original budget estimate or below

To budget

95% to 105% of original budget estimate

Minor changes

105% to 120% of original budget estimate

Medium changes

120% to 140% of original budget estimate

Major changes

Over 140% of original budget estimate

Changes in Scope

Changes in scope beyond the start date are not accounted for.

Language definitions

Where guidance is non-specific as to dates for completion, the following is used. Project to be completed by 2018 = December 31, 2017 Project to be completed in 2018 = December 31, 2018